Novartis commits US $23B to U.S. expansion amid pharma tariff pressures

SWITZERLAND – Novartis has unveiled a sweeping US $23 billion investment plan to expand its manufacturing and research presence in the United States.

The bold move comes amid mounting pressure on global pharmaceutical supply chains and growing concerns over potential U.S. tariffs on imported medical products.

The investment includes a US $1 billion biomedical research hub in San Diego, set to open between 2028 and 2029.

It also covers four new manufacturing plants at undisclosed locations for biologics, chemical drug substances, finished products, and medical devices, along with two radioligand therapy (RLT) facilities in Florida and Texas.

The company will also expand its existing RLT sites in Indianapolis, Millburn (New Jersey), and Carlsbad (California).

This expansion is projected to create nearly 1,000 jobs directly within Novartis and support an additional 4,000 roles across the U.S. economy.

“As a Swiss-based company with a significant presence in the U.S., these investments will enable us to fully bring our supply chain and key technology platforms into the U.S. to support our strong growth outlook,” said Novartis CEO Vas Narasimhan.

He credited the U.S.’s pro-innovation policy and regulatory environment as a critical factor in the decision.

The move is particularly significant as it marks the first major U.S.-based expansion announced by a European pharmaceutical firm in the wake of renewed U.S. trade threats under President Donald Trump.

While pharmaceuticals were initially exempt from tariff policies, Trump recently signaled that they could be targeted next to push companies to bring manufacturing home.

Prior announcements in response to these threats have primarily come from U.S.-headquartered companies, including Eli Lilly and Johnson & Johnson, with Pfizer also expressing interest in reshoring production.

The decision comes as European pharma leaders warn of a potential exodus of R&D to the U.S. unless the EU updates its regulatory framework.